5/17/2023 0 Comments Tax deduction asset writedown![]() ![]() The rest of the expenses are carried forward to next year.Īn example will probably make this easier to understand. If the investment interest expenses are more than the net investment income, you can deduct the expenses up to the net investment income amount. If your investment interest expenses are less than your net investment income, the entire investment interest expense is deductible. Now, compare your net investment income to your investment interest expenses. It does not include investment income taxed at the lower, long-term capital gains tax rates, or municipal bond interest, which is not taxed at all. This normally includes ordinary dividends, which are taxed at ordinary income tax rates, and interest income. ![]() To calculate your deductible investment interest expense, you first need to determine your net investment income.
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